In a significant shift, coal's contribution to India's total power generation capacity fell below 50 percent for the first time since the 1960s, marking a turning point in the country's energy landscape. According to the latest POWERup quarterly report by the Institute for Energy Economics and Financial Analysis (IEEFA), renewable energy accounted for a staggering 71.5 percent of the record 13,669 megawatts (MW) of power generation capacity added in the first quarter of 2024.
This transition towards renewable energy surpasses India's target of achieving 50 percent cumulative power generation capacity from non-fossil fuel sources by 2030. Reflecting a global trend, the decline in coal's share of power generation capacity mirrors the decreasing demand for coal in G7 countries, reaching historic lows not seen since 1900 in 2023.
To expedite this transition, G7 nations pledged to phase out all unabated coal power generation by 2035, building on commitments to cease the construction of new coal-fired power plants. This move underlines a global momentum towards cleaner energy sources and reducing carbon emissions, as demonstrated by the historic agreement reached at the United Nations COP28 climate change conference in December.
India's renewable energy sector has seen significant growth, with a record issuance of 69 gigawatts (GW) of renewable energy tenders in the fiscal year 2023-24, surpassing the government's annual target of 50 GW. Vibhuti Garg, Director - South Asia at IEEFA, noted the resurgence of the market after challenges posed by the COVID-19 pandemic and geopolitical events, highlighting India's rise to the third position in global solar power generation rankings.
Solar energy has emerged as a key player in India's energy transition, accounting for a record 5.8 percent of electricity generation in 2023. The country witnessed the fourth-largest increase in solar generation globally, with solar's contribution to electricity generation surging from 0.5 percent in 2015 to 5.8 percent in 2023.
Looking ahead, the International Energy Agency (IEA) emphasizes the crucial role of renewable energy expansion and energy efficiency improvements in limiting global temperature rise to 1.5 degrees Celsius.
For now, India stands among the nations committed to tripling renewable capacity by 2030, recognizing the imperative of transitioning towards cleaner and more sustainable energy sources to meet developmental and climate goals.
